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Fact 7.3.2
With free trade between Australia and Canada,Australia would export beef to Canada.But Canada imposes an import quota on Australian beef.
-Refer to Fact 7.3.2.If Canada imposes an import quota on Australian beef,the price that Canadian consumers pay for beef will ________ and the quantity of beef produced in Canada will ________.
A)not change;decrease
B)not change;increase
C)rise;not change
D)rise;increase
E)fall;decrease

Question

Quizplus · Accepted Answer

When Canada imposes an import quota on Australian beef, it limits the supply of beef in the Canadian market, leading to an increase in the price due to reduced competition. Additionally, the quota encourages domestic production to fill the gap, leading to an increase in the quantity of beef produced in Canada.

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